International payments a major headache for SMEs

FOUR IN TEN small and medium-sized enterprises (SMEs) in the UK say that the cost of making and receiving international payments is their second-biggest biggest frustration, behind currency fluctuations, a new survey has found.

Around one third of respondents said their top concerns were delays in waiting for payments; fears of actual or potential fraud; and extra costs such as “landing” or “receiving” charges when paying overseas suppliers or receiving payments.

In addition, a quarter of SMEs said that they choose not to do business in some countries because of the risk of not being paid.

Matt O’Donnell, director of business development at Earthport, said: “Helping the small business boost their exports depends on making it easier
for them to do so by removing as many barriers as possible.

“The delays, costs and hassle in sending and collecting global payments and the difficulties in managing overseas bad debt are problems that need to be
overcome.”

The survey also revealed a “wish list” of the features that SMEs would like
to see from payment services. SME requests included receiving payments within two business days, and more transparency over the total cost of making international payments.